ITAT Upholds Cash Basis Accounting for Duty Drawback Against AO Addition

Apex Irrigation Vs ITO (ITAT Rajkot) Receipt, Not Accrual – Duty Drawback Timing Issue Fixed- : Tribunal Accepts Consistent Cash Accounting Method Duty Drawback Addition Deleted; Cash Basis Method Upheld Assessee, a partnership firm engaged in manufacturing plastic products, filed ROI for AY 2018-19 declaring Rs.5,60,289. The case was selected for scrutiny to examine duty drawback & ICDS compliance. As per ITS data, total duty drawback sanctioned was Rs.15,70,775, whereas Assessee offered only Rs.10,73,593. AO added the difference of Rs.4,97,182 as income from other sources on the gr...